Rachael wants to receive monthly payments of $2,775 for 20 years. How much does she have to invest now in an annuity that offers an annual interest rate of 6%? Round your answer to the nearest $100.

$387,336.64 1

Step-by-step explanation:

The computation of the amount invested now is shown below:

Here we use the present value formula i.e. to be shown in the spreadsheet

Given that,  

Future value = $0

Rate of interest = 6%  ÷ 12 months = 0.5%

NPER = 20 years × 12 months = 240 months

PMT = $2,775

The formula is shown below:

= -PV(Rate;NPER;PMT;FV;type)

So, after applying the above formula, the present value is $387,336.64 1

d. 24+-0.114

step-by-step explanation:

the question requires us to calculate the approximate 95% confidence interval for the mean number of ounces of ketchup per bottle in the sample given the following statistics;

sample mean = 24

standard deviation, σ = 0.4

sample size , n = 49

the confidence interval for a population mean is calculated using the formula;

sample mean ± z-score*(σ/sqrt(n))

the z-score associated with a 95% confidence interval, from the standard normal tables, is;

1.96

substituting these values into the formula;

24 ± 1.96*(0.4/7)

= 24 ± 0.112

from the alternatives given, choice d is closest to the above expression;

answer is b

step-by-step explanation: